Brisbane Airbnb hosts hit by ‘nasty’ rates hike in council budget

Airbnb owners have been left reeling by a “nasty” 50 per cent rates hike that will leave some like Karina Patel with “next to zero” return on their investments.

Brisbane homeowners have reacted angrily to a Brisbane City Council move to hike up rates for properties listed on short-term accommodation sites like Airbnb.

Announced by Lord Mayor Adrian Schrinner in Wednesday’s budget, it is designed to help provide some relief amid the ongoing rental crisis.

From July 1, owners who rent residential properties through websites like Airbnb, Booking.com and Stayz will be asked to self-identify.

Airbnb host Karina Patel said her Bulimba townhouse will be her “primary source of income” when she goes on maternity leave.

Ms Patel, who is self-employed and nearly half way through her pregnancy, said she put all her savings into the investment property after losing her job last year.

She said the budget announcement was a “nasty shock.”

Karina Patel says the rates hike for Airbnb hosts came as a “nasty shock”. Picture: Richard Walker

“It was hard during Covid to find long term tenants and so Airbnb was my only option – and now being penalised is just horrible.

“Anyone who has got a medium to large density residential place has to apply for special permission to short term rent anyway – so it is restricted.”

Ms Patel currently generates about $2240 a month through her Airbnb investment property in Bulimba but said if she is forced to price hike in order to absorb the rates, but if less people book she will be left with “next to zero”.

Brisbane Lord Mayor Adrian Schrinner said properties leased for less than 60 days a year or with just a bedroom for rent will be excluded.

Eligible owners will pay a 50 per cent surcharge on their current rates bill, for properties leased meaning a property on Brisbane’s minimum rating category will pay about $600 extra a year.

“But, ultimately, this is about getting more accommodation for renters to be available in that long term rental market – every single property that switches from short term to long term rental is a win for the community,” Mr Schrinner said.

Q Shelter executive director Fiona Caniglia commended the leadership of Cr Schrinner in announcing the Airbnb rates hike.

“We need to incentivise the return of these properties to the private rental market so more people can find a home – it is a great example of local government demonstrating commitment and practical solutions to the housing crisis,’’ she said.

“There is no doubt that the trend in listing privately owned homes as temporary accommodation is removing housing options from people, including families, who are desperately searching for a home

“In the lead up to the Olympics, we need more measures like this to increase housing supply and prevent more homes being lost to the temporary accommodation market.

“We also need better data to understand the full impact of homes being listed as short-term rentals rather than long-term homes.”

Brisbane Greens councillor Jonathan Sri said “a rates increase of a couple hundred dollars per year is crumbs to these Airbnb investors”.

“I’ve got nothing against residents who rent out a spare room, or who Airbnb their apartment just for a couple weeks a year while they’re travelling, but if investors are renting out entire homes on Airbnb or similar platforms on an ongoing basis, they should be charged up to the eyeballs for it.”

Lord Mayor Adrian Schrinner unveils the 2022-23 Brisbane City Council Budget. Picture: Steve Pohlner

But Airbnb’s country manager for Australia and New Zealand, Susan Wheeldon said “now is not the time for making sudden policy changes, without consultation”.

“Differential rates will place further financial pressure on everyday Queenslanders who share their homes to help make ends meet,” she said. 

“It will also hurt guests and the broader community who rely on short-stay accommodation to travel affordably in Brisbane, including for purposes such as to provide care and support for family members.”

Ms Wheeldon said Airbnb “welcomes the opportunity to work constructively with the council towards commonsense regulatory initiatives backed by sound evidence”.

Meanwhile, Stayz director (government affairs) Eacham Curry said councils need to recognise the benefit short term rental accommodation brings to the local economy.

“The holiday rental industry injects about $201.5 million to the Brisbane tourism region – it doesn’t make sense to then punish mum and dad homeowners by imposing higher rates or unfairly restricting how they can and can’t use their properties,” he said.

“Regulations for short-term rental accommodation should originate from the state and territory government level, rather than through piecemeal local council decision-making.”

Originally published as Brisbane Airbnb hosts hit by ‘nasty’ rates hike in council budget